Israeli markets closed on Wednesday, November 26, with a continuation of the positive momentum seen in the prior session. Major equity indices posted solid gains, reflecting sustained investor confidence and improving sentiment across both large-cap and mid-cap segments. While equities strengthened broadly, the bond market showed more cautious positioning, with declines in several fixed-income indices signaling selective risk rebalancing.

Blue-Chip Index Rises Again as Large-Cap Momentum Holds

The TA-35 climbed 0.88% to 3,374.30 points, adding to the previous session’s strong rebound. Market breadth, while mixed, still leaned positive with 16 advancers versus 18 decliners and one unchanged. The steady performance of large-cap names indicates continued investor appetite for companies perceived as stable anchors during shifting global economic conditions. Recent improvements in international equity markets and moderating concerns around interest-rate trajectories appear to have lifted sentiment among domestic institutional investors. The TA-35’s consistent upward movement highlights a renewed preference for blue-chip exposure, especially in sectors tied to technology, financials, and infrastructure. Although breadth was not as robust as mid-caps, the index’s upward trend underscores confidence in the long-term fundamentals of Israel’s leading corporates.

Mid-Caps Outperform as Broader Risk Appetite Strengthens

The TA-90 index outperformed the large-cap benchmark with a 0.92% increase, closing at 3,591.44. Market breadth was overwhelmingly positive, with 64 advancing stocks compared to just 24 decliners. This broad-based strength suggests growing optimism about the domestic economy and improved investor willingness to rotate into higher-beta names. The TA-90 & Banks index also posted a notable 0.68% gain, supported by continued flows into financial stocks. Bank shares have been benefiting from stable credit conditions and expectations that lending activity will remain resilient. Similarly, the broader TA-125 index rose 0.89% with strong breadth—80 advancers versus 42 decliners—indicating that buying pressure extended across a wide range of sectors and market caps. Although the TA-125 Value Index was flat on the day, the overall composition of gains suggests investors are balancing growth-oriented positioning with stable, fundamentally sound names.

Bond Market Softens as Investors Shift Toward Equities

Despite the strength in equities, the bond market delivered mixed results. The Short-Term Bond Index remained unchanged at 463.58 points, reflecting stable demand for lower-duration instruments that offer defensive characteristics. However, broader fixed-income indices weakened modestly. The All-Bond General Index declined 0.08% as selling pressure increased, shown by 394 declining securities versus 100 advancers. Investors may be adjusting their exposure away from longer-duration or interest-rate-sensitive bonds as equity opportunities become more attractive. Inflation-linked bonds also retreated, with Tel-Bond Linked A falling 0.13% and Tel-Bond 60 Linked slipping 0.05%. These movements suggest a reassessment of inflation expectations or a simple rotation toward equities following two consecutive strong sessions.

Looking ahead, the continued strength across Israeli equities suggests growing confidence, but the divergence between stock and bond markets highlights the importance of monitoring global macroeconomic signals. Investors will be watching upcoming inflation data, central bank commentary, and geopolitical developments closely for indications of whether this upward trend can persist. Opportunities may emerge in segments that have lagged the recent rally, while risks remain tied to potential shifts in global rate expectations, liquidity trends, and sector-specific earnings. Staying attentive to market breadth, equity-bond correlations, and cyclical rotation will be key as the next trading sessions unfold.